J
JamesATyler
Guest
Honestly, I have never looked into the two sides of the argument concerning whether it should be raised or not, until recently. I do not know the economical fine points of the argument and I cannot verify what experts say on either side when they go into so much detail, yet. But I am going to try to learn about this the best that I can. This is a social justice issue, in my view, as well as an economical one. Let me explain my understanding of the situation and why I think some groups are misleading people by saying the minimum wage should not rise. I don’t know if it is intentional. In most cases, probably not, but rather I think some people are confused. (or I am)
What I hear often, and I have asked people directly, what their view is on the issue, and usually I hear, “If minimum wage goes up, then the cost of everything goes up.” So the conclusion of course is that paying unskilled labor more money is bad for them, bad for the employer (obviously), and bad for the whole world in general. But wouldn’t the same be true of all raises? If everyone else is getting substantial raises every year, doesn’t that drive up the cost of goods and services as well? Are these people trying to make me believe that every single worker in America can receive substantial raises every year but if we give unskilled labor a substantial raise the whole system will break down? This proposition is incredibly fishy to me.
Let me look at this another way. Apparently, minimum wage workers comprise about 3 million of the work force. In another study (thinkprogress.org/economy/2012/07/24/573671/one-in-four-private-sector-workers-earn-less-than-10-an-hour/) about 1 in four private sector workers make less than 10 dollars an hour. So raising the minimum wage would affect 1/4th of the work force. Ok, I can see why this would have a large effect on the economy. But, apparently, a small number of industries have people with a median wage of less than 10 dollars an hour.
sort by median hourly wage to see that the vast majority of industries already pay their workers more than 10 dollars an hour.
bls.gov/oes/current/oes_nat.htm#(4
So this means that these few industries at the bottom of the list will be the ones most directly affected by a minimum wage increase as they will have to directly raise the prices of their goods and services to compensate for the higher wage of their labor force. However, I assume there would be a ripple effect through each industry beginning with greater strength with those who make the least over 10 dollars an hour and ending with the least strength with those who make the most per hour. Why? Because someone who makes 11 dollars an hour with find themselves paying more for the directly affected services and yet do not have much disposable income. While a brain surgeon, who makes a large wage, and has a much higher disposable income will not feel affected nearly as much. So, I am inclined to believe that their will be a push for higher wages beginning at the bottom, as people try to compensate. However, we can assume that even if the minimum wage is not increased, all of the workers in these industries will be asking for raises anyway, and they will get them. The brain surgeon will make more next year regardless, and, apparently, as you go up in wages, the raises can be quite good. The brain surgeon for instance will not get a meager 2 dollar an hour raise. So this accounts for the growing disparity that I keep hearing about. This is the disparity between those receiving massive raises at the top and those at the bottom making minimum wage who cannot get 2 more dollars an hour. And this disparity will grow.
What does this portend? Obviously, the cost of those raises as you go up the industry ladder translate into higher costs for those services and goods. A minimum wage earner cannot directly afford the services of a brain surgeon or many other services available. So they must turn to the government. Our government (at this time) does two main things, according to the philosophies of our two main parties. Republicans, push for the worker to pull himself up by his bootstraps, get an education, and move up the ladder. A fine philosophy and I hope we don’t lose that in this country. The democrats, try to advocate for the poor, by asking employers to pay more for these unskilled workers. Also a fine role. Let me explain myself.
(cont)
What I hear often, and I have asked people directly, what their view is on the issue, and usually I hear, “If minimum wage goes up, then the cost of everything goes up.” So the conclusion of course is that paying unskilled labor more money is bad for them, bad for the employer (obviously), and bad for the whole world in general. But wouldn’t the same be true of all raises? If everyone else is getting substantial raises every year, doesn’t that drive up the cost of goods and services as well? Are these people trying to make me believe that every single worker in America can receive substantial raises every year but if we give unskilled labor a substantial raise the whole system will break down? This proposition is incredibly fishy to me.
Let me look at this another way. Apparently, minimum wage workers comprise about 3 million of the work force. In another study (thinkprogress.org/economy/2012/07/24/573671/one-in-four-private-sector-workers-earn-less-than-10-an-hour/) about 1 in four private sector workers make less than 10 dollars an hour. So raising the minimum wage would affect 1/4th of the work force. Ok, I can see why this would have a large effect on the economy. But, apparently, a small number of industries have people with a median wage of less than 10 dollars an hour.
sort by median hourly wage to see that the vast majority of industries already pay their workers more than 10 dollars an hour.
bls.gov/oes/current/oes_nat.htm#(4
So this means that these few industries at the bottom of the list will be the ones most directly affected by a minimum wage increase as they will have to directly raise the prices of their goods and services to compensate for the higher wage of their labor force. However, I assume there would be a ripple effect through each industry beginning with greater strength with those who make the least over 10 dollars an hour and ending with the least strength with those who make the most per hour. Why? Because someone who makes 11 dollars an hour with find themselves paying more for the directly affected services and yet do not have much disposable income. While a brain surgeon, who makes a large wage, and has a much higher disposable income will not feel affected nearly as much. So, I am inclined to believe that their will be a push for higher wages beginning at the bottom, as people try to compensate. However, we can assume that even if the minimum wage is not increased, all of the workers in these industries will be asking for raises anyway, and they will get them. The brain surgeon will make more next year regardless, and, apparently, as you go up in wages, the raises can be quite good. The brain surgeon for instance will not get a meager 2 dollar an hour raise. So this accounts for the growing disparity that I keep hearing about. This is the disparity between those receiving massive raises at the top and those at the bottom making minimum wage who cannot get 2 more dollars an hour. And this disparity will grow.
What does this portend? Obviously, the cost of those raises as you go up the industry ladder translate into higher costs for those services and goods. A minimum wage earner cannot directly afford the services of a brain surgeon or many other services available. So they must turn to the government. Our government (at this time) does two main things, according to the philosophies of our two main parties. Republicans, push for the worker to pull himself up by his bootstraps, get an education, and move up the ladder. A fine philosophy and I hope we don’t lose that in this country. The democrats, try to advocate for the poor, by asking employers to pay more for these unskilled workers. Also a fine role. Let me explain myself.
(cont)